Your licensed Presenter

Dave Coen 714-813-1703

Welcome to the

College Planning

America Workshop

Back in the

day…

We never

thought we

would grow up

Now our kids

are laughing…

Because we think

they won’t grow

up either

We still see them as kids

When in reality…

This is the next step

Many parents are not financially

and emotionally prepared for their

kids to go to college

Just because

your student is

leaving the

nest…

Does not mean

they have to take

your nest egg with

them!

Our focus is:

Knowledge.

With knowledge you are

empowered to have more control

• We all have different

circumstances

• Each family is unique

• This requires timely

information and proper

guidance, hopefully some

of which you will get from

our workshop tonight

I am in the same boat as you…

What you might

experience at the

end of this:

• This is a little overwhelming

• I need more information

• Why so early? Comment we most often get!

• Who are we?

• How do I get scholarships?

• You are just trying to sell something

• Speak with one of us after the meeting for

specific questions

• And to schedule your no cost, 90-minute

appointment

There are two sides to

this story

$’s and Financial

moves

Lowering of EFC

Strategic planning

Plugging the holes

Assessments

Career

Majors

Schools

Scholarships

% pass rate

Parents and Students

Parents

What makes a “FIT” college

MAP IT OUT

M eet the Requirements for the School

A ccepted to the school

Pay for it

The College process is intimidating:

Choosing a school

Choosing a career

Choosing to live on campus or

commute

This is the most

expensive time for

your family

College and Retirement

Both Are Possible!

Today’s “Classic” Household

• The last 17 years have flown by

• Total savings between 1% and 5% of annual income

• Has less than half of one year’s tuition banked

• Has more consumer debt than ever before

• May have to sacrifice retirement to pay for

college

Path to Prosperity:

Have a Plan!

Educate: Do not assume.

Map it out: Category, estimated

family contribution (EFC) and the

school’s award history, money

saving strategies and

alternatives.

Accomplish: A college

strategy that preserves

retirement assets.

Financial Aid is a LANGUAGE OF ITS OWN!

Warning… This may be disturbing

COA- Cost of Attendance

EFC- Expected Family Contribution

FAFSA- Free Application for Federal Stude

FAD- Financial Aid Director

FAO- Financial Aid Director

FDSLP- Federal Direct Student Loan Program

FFELP- Federal Family Education Loan

GSL- Guaranteed Stafford Loan

PLUS- Parent Loan for Undergraduate Stud

What do these Acronyms mean?

COA- Cost of Attendance

EFC- Expected Family Contribution

FAFSA- Free Application for Federal

Student Aid

FAD- Financial Aid Director

FAO- Financial Aid Officer

FDSLP- Federal Direct Student

Loan Program

FFELP- Federal Family Education Loan Program

GSL- Guaranteed Stafford Loan

PLUS- Parent Loan for Undergraduate Students

Common Terms to Learn

• Federal

Methodology

• Institutional

Methodology

• Award Package

• Asset Allowance

• Base Year

• Category

• Expected Need

• Profile Form

• Work Study

Present Day Cost

Of College

College expenses are increasing 5- 12% each year

The average increase for PUBLIC schools: 6.6%

The average increase for PRIVATE schools: 6.3%

Source: Collegeboard.com

The Cost of an

Undergraduate Degree

Put these schools in order Based on Cost? $$

1. San Diego State University

2. UCLA

3. California State University, Fresno

4. Concordia University

5. California State University, Fullerton

6. Stanford University

7. University California, Davis

8. University Southern California

9. Pepperdine University

10.University of San Diego

Average Cost

of Attendance (COA)

Cost of Attendance Includes: Tuition, Room and Board,

Book, Fees, Transportation, Miscellaneous Costs

STATE SCHOOL in the area

$ 40,132 per year

PRIVATE SCHOOL in the area

$ 53,702 per year

Source: CPA Research

California Area School Cost

Increase since 2003

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

2002-2003

2012-2013

Source: CPA Research

Based on Average Award, 7% Tuition rate and $20,000 EFC

6. Stanford University $73,080

1. San Diego State University $96,764

3. California State University, Fresno $102,208

5. California State University, Fullerton $114,372

8. University Southern California $123,264

10. University of San Diego $134,384

4. Concordia University $138,436

7. University California, Davis $138,552

2. UCLA $138,996

9. Pepperdine University $153,796

Schools in Order

Based on Cost

Source: CPA Research

What is the REAL COST of

College?

The most expensive thing about

college…

• Is not Graduating

The Second most expensive thing about

college…

• Switching Majors/ Switching

schools

What % of students graduate

in 4 years?

How many students are

Graduating in 4 Years?

Graduation Rate for Public State Schools

California State University, Fresno

California State University, Fullerton

San Diego State University

UCLA

University of California, Davis

Source: CPA Research

How many students are

Graduating in 4 Years?

Graduation Rate for Private Schools

Concordia University

Pepperdine University

Stanford University

University of San Diego

University of Southern California

Source: CPA Research

FINANCIAL AID MYTHS

• “We make too much MONEY”

• “Our home is worth too much”

• “My Child’s grades are too low”

• “I have too much DEBT”

• “Getting Financial Aid is easy”

• Students who are independent get more aid”

False- must be 24, have children, married, veteran, Ward of the State,

or Completed Undergrad and working on an Advanced Degree

Classic Approach to Paying

for College

• How much MONEY do we have?

• Can we get more MONEY?

• Do we have a BUDGET?

SPEND IT ALL!

BORROW IT!

SQUEEZE IT!

• Do we qualify for

financial aid ?

• Know your EFC…

• What is my EFC?

• is it a fixed number?

• Same as a credit score?

How do I get

Financial Aid?

Know Your EFC!

Expected Family Contribution

– Parent Income

– Parent Assets

– Student Income

– Number of Children in College

– Parents Age(s)

– Number of People in Household

Also Consider… SCHOOL SELECTION!

2 Types of EFC

Formula for EFC

Parent

Contribution

depends on

Student

Contribution

depends on

Adjusted

Income

Discretionary

Assets

AGI

+

Untaxed

Benefits

Investments

Real Estate

Child Assets

Savings

FICA

S.S

I.P.A

E.E.A

Retirement

Insurance

Home Equity

A.P.A.

Adjusted

Income

Discretionary

Assets

AGI

+

Untaxed

Benefits

Investments

Real Estate

Child Assets

Savings

FICA

S.S

I.P.A

E.E.A

AID ADVANTAGE TAX ADVANTAGE

Bucket Advantage

Determination of

Need Eligibility

Cost of

Attendance

(COA)

Expected

Family

Contribution

(EFC)

Financial

Need

• Tuition

• Room

• Board

• Books

• Living Expenses

• Transportation

• Parent Income

• Parent Assets

• Student Income

• Student Assets

• # in College

• Parents Age

• # in Household

The Maximum

Amount of Aid

a Family May

Receive

Do you have any of these?

Bonds Grandparent Contributions

Cookie Jar Minor’s Accounts

Stock Options CD’s Stocks

Mutual Funds

Student Owned Assets Savings Accounts

Money Market

Trust Accounts Vacation Home

Rental Property

These may reduce your

financial aid.

$10,304 less $4,385 less

$7,172 X 4 = $28,688 $7,975 X 4 =

$31,900 $18,593 X 4 =

$74,372

• Full Time

• Part time

• During the Summer

• Udacity.com

• Coursera.org

• MOOC – Massive Open Online Course

[UC’s]

Have you considered

Community College?

The problem with

529 plans?

The 5 most expensive things about College

1. Not graduating

2. Changing schools or courses

3. Saving in the wrong financial vehicle

4. OOPS – Out Of Pocket expenses

5. Structuring how to pay for college

Our focus is:

Preventing the OOPS!

There are steps that can be taken to

minimize the possibility of all 5 of these.

•The average parent asks, “Can you help me find grants

and scholarships?”

–YES!

•But is that the only place to look and how much money is

available from those sources?

•It might make more sense to approach college planning

with a TOTAL approach.

Let’s take a look at some areas of increasing wealth

without any money out of pocket.

Where do most people focus their attention

for college money?

And…where do most of the savings

come from with proper planning?

The Transition from College

Planning to College Funding

All our finances are connected.

Just because we compartmentalize them does not

separate the consequences

• When trying to fill a

bucket, does it make more

sense to pour more in or to

plug the holes?

• Where does it make more

sense to focus on first?

• Our focus is to plug the

holes FIRST and then

there are a number of

areas that we should look

at as they all work in

tandem with each other.

Our focus is:

Our focus is:

There are two sides to

this story

$’s and Financial

moves

Lowering of EFC

Strategic planning

Plugging the holes

Assessments

Career

Majors

Schools

Scholarships

% pass rate

Parents and Students

Parents

Our focus is:

Have A Plan!

✔ ✔ ✔ ✔

Prioritize Financial Objectives

Understand total

OUT OF POCKET expense

Eliminate Wealth Leakage

Determine what options

are available

What is NEXT?

• The answer is different for everyone

• Number of students and their ages

• Financial constraints/opportunities

• Personal/ professional/ family goods

• Condition of retirement accounts

• How close ARE YOU to retirement?

Register today for a no cost,

90- minute appointment

and get four free gifts

1. Strengths and communication profile for

both student and parents

2. EFC estimate

3. Your category

4. Our College Planning Email Letter

Get your free Communication

profile for you

AND your student

Descriptors Bold Driving Pioneering Direct

Competitive Determined

Descriptors Peaceful Agreeable Cautious Cooperative

Humble Mild

Problem Solving (L Scale)

Neutral

INFIELDER OUTFIELDER

Thank you for attending the

CPA workshop

www.collegeplanningamerica.com

Your licensed Presenter

Dave Coen 714-813-1703